--%>

Private closed economy based question

The data of columns 1 and 2 of the below table are for a private closed economy. Given the original $20 billion level of exports, determine the equilibrium GDP if imports were $10 billion greater at each level of GDP? 

 

328_Private closed economy.png

E

Expert

Verified

Imports = $40 billion: In the private open economy aggregate expenditures would fall by $10 billion at each GDP level and the new equilibrium GDP would be $300 billion.

   Related Questions in Finance Basics

  • Q : Define Performance Budget Performance

    Performance Budget: A budget in which proposed expenditures are prepared and tracked mainly by measurable performance objectives for actions or work programs. The performance budget might also incorporate other bases of expenditure categorization, lik

  • Q : Seasonal variations and secular trends

    Normal 0 false false

  • Q : Advantages-disadvantages of internal

    Describe advantages and disadvantages of the internal rate of return method? The internal rate of return method is discounted cash flow method and number expressed like a percentage. Typically these are seen as advantages. The main disadvantag

  • Q : Value $100 is received at the beginning

    $100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is

  • Q : How do mergers influence communities

    How do mergers influence communities?While a locally controlled bank is merged into a bank headquartered elsewhere (an out-of-market merger), some of the apprehension regarding the institution's future commitment to the local community is bound

  • Q : Explain the term Continuous

    Continuous Appropriation: The constitutional or statutory expenses authorization that is renewed each year without additional legislative action. The amount obtainable might be particular, recurring sum each year; all or a specified part of the procee

  • Q : What are Tax Expenditures Tax

    Tax Expenditures: The subsidies offered via the taxation systems by generating deductions, credits and exclusions of certain kinds of income or expenditures which would otherwise be taxable.

  • Q : Explain Department of Finance

    Department of Finance (Finance): The Director of Finance functions as the Governor’s chief fiscal policy advisor with the emphasis on financial integrity of the state. Finance is delegated the accountability for preparation of the Governor's Bud

  • Q : Define the term Unappropriated Surplus

    Define the term Unappropriated Surplus: It is an outdated term for that part of the fund balance not reserved for particular purposes.

  • Q : What is Reference Code Reference Code :

    Reference Code: A three-digit code recognizing whether the item is from the Budget Act or some other source (example, legislation), and its character (example, state operations). This is the middle segment of the budget item or appropriation number.